Sales of existing homes in the United States increased slightly in May but the sluggish moving market in the country looks set to continue.
The Wall Street Journal reported that according to the latest report from the National Association of Realtors (NAR), existing-home sales rose 0.8% in the month, better than expected, but the slowest pace for any May since 2009 and 0.7% from a year earlier. Affordability continues to be the major barrier, with home values near all-time highs and mortgage rates stuck above 6.5%. According to an analysis by NAR and Realtor.com, households earning $100,000 a year could afford to buy 65% of available listings six years ago. In 2025, that same income can afford only 37% of the homes listed.
Across the United States, there were 1.54 million homes for sale or under contract at the end of May, up 6.2% from April and up 20.3% from May 2024, NAR reported, with the typical home on the market for 27 days, up from 24 days a year earlier. “Consumers are not getting into the market,” said Lawrence Yun, NAR’s Chief Economist. “I would attribute that to the affordability challenges.”